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Realtors eye Rs 1,000 crore from PE funds

Jharna Mazumdar, Mumbai, Financial Chronicle

April 25, 2011

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Starved by banks who are going slow on loans to realtors and slowing sales of apartments, smaller real estate developers in western India are wooing private equity investors to raise as much as Rs 1,000 crore to invest in their new projects. Real estate developers such as Maharashtra-based Everest Developers, Puranik Builders, Sunjana Realtors and Omkar Realtors are planning to raise around Rs 300 crore each through private equity funds. "In March-April period, residential sales were down and cash flow of many developers has come down. Banks are also very cautious to lend to real estate players. Private equity players are showing interest since they will be able to get better deals," Ravi Ahuja, director at Cushman and Wakefield, said.

Puranik Builders' plans to raise around Rs 300 crore by this year to fund its upcoming projects. "We will invest around Rs 500 crore this year for five new residential projects. We already have a land bank of 100 acres and need funds for construction," said Shailesh Puranik, managing director of Puranik Builders. The company has 10 ongoing residential projects in Thane, Mumbai, Lonavala and Nashik.

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